MoD has it right says NAO

Construction projects for the Ministry of Defence 'generally are being delivered to time and cost' and have latterly achieved 'some savings,' according to the National Audit Office.

Its report on the MoD's procurement performance since ceasing to operate through the Property Services Agency makes no reference to the MoD's unpopularity with contractors. NAO's analysis of 15 projects shows savings of œ19.3 million compared with approved budgets, although these were mainly due to the effects of the recession on contract prices.

Significantly, it adds that the DoE have transferred risk to contractors 'probably at little or no cost.' It concedes that construction risks identified at the outset of the Abbey Wood office complex have become more significant.'

The report acknowledges that the department needs to appoint its private sector project managers at an earlier stage. It is further accepted that some project sponsors do not have sufficient understanding of their responsibilities.